News Briefs: Clover Health Settles Remaining Shareholder Suits
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Jun 23, 2023
Clover Health Investments Corp. said it has reached an agreement to settle seven shareholder-filed lawsuits that accused the Medicare-focused insurer of concealing material information from investors before going public. In April, the company agreed to pay $22 million to settle a similar class-action lawsuit filed by shareholders, which centered on allegations outlined in a report from the activist short-selling firm Hindenburg Research. That report called Clover a “broken business” that “misled investors about critical aspects” of its operations in the run-up to the company’s 2021 debut on the stock market, including failing to disclose an active Dept. of Justice investigation. Clover did not admit wrongdoing as part of either the April settlement or the June agreement, which will resolve the remaining shareholder-led civil cases filed against it in Delaware, New York, and Tennessee courts. Read more
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